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Novavax (NVAX) Stock Slides as Market Rises: Facts to Know Before You Trade

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Novavax (NVAX - Free Report) closed the most recent trading day at $7.64, moving -2.55% from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Coming into today, shares of the vaccine maker had gained 20.99% in the past month. In that same time, the Medical sector gained 2.39%, while the S&P 500 gained 5.71%.

Market participants will be closely following the financial results of Novavax in its upcoming release. The company is forecasted to report an EPS of -$0.19, showcasing a 119.19% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $118 million, down 71.6% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.48 per share and a revenue of $1.05 billion, indicating changes of +301.63% and +53.6%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Novavax. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.34% decrease. Novavax is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Novavax's current valuation metrics, including its Forward P/E ratio of 3.16. This expresses a discount compared to the average Forward P/E of 19.48 of its industry.

It is also worth noting that NVAX currently has a PEG ratio of 0.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.62.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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